31 July 2012
journal entries in the books of mr bipin.(proprietor) # drew from bank Rs 40000 for his personal purpose case1) no entry bcoz the business of the proprietor is not related here what is related here is just the bank and he is withdrawing for his personal purpose. for eg if it was written as drew cash/goods for his personal purpose . here he is not withdrawing from his business but from the bank and that too for his personal purpose. case2) drawings a/c .............dr to bank a/c is this correct as we have to assume here that he is withdrawing from his current a/c an d not from his savings A/C PLEASE TELL ME WHICH ONE IS COORECT WITH REASONS. thank you.
31 July 2012
Proprietor is withdrawn cash from Business current account for personal use can be treated as normal drawing only, Debit Drawings a/c, Credit Bank a/c.
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